Ripple XRP has seen a modest increase of 1.58% recently, aligning with a broader crypto market recovery. However, several bearish signals suggest potential hurdles for its anticipated breakout.
Ripple XRP’s Current Market Position
The cryptocurrency is experiencing early signs of vulnerability, despite rebounding from a key trendline identified last week. According to technical analysis by crypto market expert ‘CasiTrades’, Ripple XRP has not yet surpassed the critical $3 resistance level. This threshold is crucial for confirming a new bullish trend.
Without breaking this barrier, the asset may continue facing downside tests. Immediate support levels have been pinpointed at $2.79 (50% retracement) and $2.58 (61.8% retracement). Recent price movements raise caution, as the upward trend resembles a corrective ABC pattern rather than a five-wave impulsive rally. The C-wave targets have faced sharp rejection, with bearish divergences emerging on the 4-hour chart.
Technical Analysis of Ripple XRP
On a shorter timeframe, the 1-hour RSI shows Ripple XRP testing its lower support trendline. This level is under close observation to determine future movements. A dip below $2.69 would necessitate a reassessment of the current wave count. However, a test of $2.58 might still align with a broader bullish scenario if maintained.
If Ripple XRP falls below $2.58, it could undermine the bullish market structure and jeopardize the macro outlook. For now, supports remain largely intact, with traders awaiting critical levels to provide the momentum needed to challenge resistance.
Potential for a Wave 3 Breakout
A genuine Wave 3 breakout would require clear and decisive breaks above $2.79, $3.00, and $3.25. Continued resistance or rejection at these levels could indicate further downside testing before any sustained upward movement. Analysts suggest monitoring Bitcoin for alignment and watching for bullish divergence in the next wave down. Once momentum appears, Ripple XRP could be set for the breakout traders have been anticipating.
Long-Term Prospects for Ripple XRP
Despite near-term bearish indications, some analysts predict a longer-term bullish setup, potentially mirroring Ripple XRP’s historic 2017 rally. Analyst MilkybullCrypto points out that Ripple XRP is approaching its highest quarterly close, which could pave the way for an uptrend toward $15.
Should the cryptocurrency maintain or exceed its current level by the quarter’s end, bullish momentum might continue in the coming weeks or months. The analyst draws parallels to 2017 when Ripple XRP’s quarterly close above $0.02 triggered a massive rally of nearly 37,800%, eventually peaking at $3.31 within a year.
In 2025, Ripple XRP seems to be on a similar path. A quarterly candle has turned green after years of consolidation, and the token has broken through a significant resistance zone around $2.20-$2.30. MilkybullCrypto notes that history may repeat with another substantial rally.
